ATM Fraud Review | European security agency

2009-09-072009-09-07 Colin Henderson

Here is a clear review of the current state of ATM fraud in Europe. It summarises the methods in some detail (refer below) as well as the overview of chip cards impact on fraud, and those countries that are not fully EMV compliant yet. EU agency ‘alarmed’ by rise in cash machine fraud | Finextra In April 2009, a 33-year-old Microsoft employee, who lives in New York City, stopped in the closest Chase bank to get some cash to pay his barber. When he inserted his ATM card in the machine, he noticed a bit of resistance. The screen said … Continue reading ATM Fraud Review | European security agency

Economy

Trends that lead to lower growth, lower profits and lower volatility for banks than during the past few decades | Deutsche Bank

2009-09-022009-09-02 Colin Henderson

This paragraph from the report below, succinctly summarises the growth prospects for Banks, and the backdrop to planning. Again, a plan that looks like the plan for 2007 is destined to fail. This is the time for breakout product design, and a dramatic cost reduction through shift to reliance on internet and online banking for a far greater breadth of service delivery. Global banking trends after the crisis | Deutsche Bank Research Lean years lie ahead for US banks. Performance improvements during the last 15 years have often been due to strong lending growth and low credit losses. As private … Continue reading Trends that lead to lower growth, lower profits and lower volatility for banks than during the past few decades | Deutsche Bank

Innovation

You know its bad when … the government is more innovative than your Bank

2009-09-012009-09-01 Colin Henderson

This post from James following his first week at the DWP (Department of Works and Pensions, and hosts of direct.gov). DWP, is running an innovation experiment where they allow citizens to put their own applications on top of government data. Yes, that’s right: an API for the government.Show me a bank with API. You can’t, because there isn’t one. I have to go to a third party like Wesabe, who basically have to suck data out of banks without their permission, to get one. I think it is early days for what Direct.Gov is doing, but you can see the … Continue reading You know its bad when … the government is more innovative than your Bank

Business Models, Profitability

Mullenweg’s Safe Bank Could not just Survive but it could Prosper

2009-08-31 Colin Henderson

When Matt wrote his post the other day about starting a bank it got me thinking about the effect of what he is saying relative to profitability when we introduce a policy to be safe and carry capital reserves of 2 – 3 times more than todays banks. Assumptions: – demand deposits = demand loans – GIC (CD) = Mortgages – incremental investment in higher returning mortgages is funded from cash Relevance to Bankwatch: A $4 increase in gross profit results in a 15% higher Return on Equity when a lower capital ratio of 10% is accepted. Note the stock … Continue reading Mullenweg’s Safe Bank Could not just Survive but it could Prosper

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World Safest Banks are European, Canadian and Australian

2009-08-302009-08-30 Colin Henderson

The worlds safest banks are European, Canadian and Australian. WORLD’S 50 SAFEST BANKS 2009 | Global Finance Magazine New York, August 25, 2009 — With bank stability still high on corporate and investor agendas,Global Finance publishes its 18th annual list of the world’s safest banks. After two tumultuous years that saw many of the world’s most respected banks drop out of the top-50 safest banks list, the dust appears to be settling. Those banks that kept an iron grip on their risk exposure before the financial crisis blew up have consistently topped the table and maintain their standing among the … Continue reading World Safest Banks are European, Canadian and Australian

Economy

Canadian Banks have a Productivity Gap relative to the US

2009-08-29 Colin Henderson

Following up on the previous post covering the Bank of Canada’s view that Canadian Banks do not have a productivity gap [pdf 19 pages] relative to US Banks, here is the basis for that contention within a 2006 report. The conclusion copied here in whole is in my view, woefully misleading and contradictory. It reads to me like someone with political motivations has turned facts into something that meets policy objectives. Analysis to follow. This work examines the efficiency and productivity of Canadian and U.S. banks in three ways. First, we compare key performance ratios and find that (i) the … Continue reading Canadian Banks have a Productivity Gap relative to the US

Economy1 Comment

The Canadian Economy Beyond the Recession | Bank of Canada

2009-08-292009-08-29 Colin Henderson

In this talk at Kingston last Tuesday, Tim Lane, Deputy Governor Bank of Canada lays out a quite lucid view [ 9 pages] of the opportunities and challenges facing Canada in recovery. Highlights: labour productivity and output is the fundamental challenge that existed before and will continue post recession the size of the working population is to decrease significantly for demographic reasons, and neither immigration nor baby boomers remaining longer in the workforce will significantly alter that prediction the financial services industry is critical to Canada at 20% of the economy Canadian producivity has been dropping because of insifficient investment … Continue reading The Canadian Economy Beyond the Recession | Bank of Canada

Uncategorized

The Role of Financial Services in the Economy

2009-08-262009-08-26 Colin Henderson

A debate ensues in UK and to some extent in France, on the issue whether the financial sector is an underpinning of the economy, or a destabilising factor to the economy. The debate is quickly moving to new taxes on transactions, but its unclear to me why that would solve either side of the debate, rather than merely be passed on to customers. City regulator seeks to deflate financial sector with global tax | FT … … a “swollen” financial sector paying excessive salaries has grown too big for society Continue reading The Role of Financial Services in the Economy

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A New Way to View Change | Interaction

2009-08-242009-08-24 Colin Henderson

Most of us here are of the mind that there is a consequential change going on, and that change is driven by internet. Part of the reason that Banks have issues dealing with internet is that it is viewed as an add-on … a new access channel that is additive to the others such as branches and telephone. The change is more fundamental however. The way that a company acts, and implements online activities increasingly defines that company, and that includes Banks. In banking language we refer to self service however this is limiting and tends to place internet within … Continue reading A New Way to View Change | Interaction